T-Mobile breaks above OID; NXP revises deadline; Avago, Shoes for Crews reveal price talk

By Sara Rosenberg

New York, Nov. 3 – T-Mobile USA Inc.’s term loan B freed up for trading on Tuesday, with levels quoted above par, and First Data Corp.’s 2017 tem loan was steady as the company approached lenders with a partial refinancing transaction.

Switching to the primary market, NXP BV moved up the commitment deadline on its term loan B, and Avago Technologies Cayman Finance Ltd. and Shoes for Crews released price talk with launch.

Additionally, timing emerged on the launch of Premiere Global Services Inc.’s credit facility, and Americold Realty Operating Partnership LP joined this week’s calendar.

T-Mobile hits secondary

T-Mobile USA’s $2 billion seven-year covenant-light term loan B (Baa3/BBB-) began trading on Tuesday, with the debt quoted at 100 3/8 bid, 100 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 275 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt includes 101 soft call protection for six months.

Recently, the term loan was upsized from $1 billion and the spread was reduced from Libor plus 300 bps.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the loan that will be used for general corporate purposes, which may include the acquisition of additional spectrum.

Closing is expected during the week of Nov. 9.

T-Mobile is a Bellevue, Wash.-based provider of wireless communications.

First Data 2017 loan steady

Also in trading, First Data’s 2017 term loan was unchanged at 99 7/8 bid, 100 1/8 offered as the company launched a partial refinancing of the debt, a trader remarked.

The company’s 2021 term loan was also flat at 100 1/8 bid, 100½ offered, its March 2018 term loan was slightly higher at 99½ bid, 99¾ offered, versus 99¼ bid, 99½ offered on Monday, and its September 2018 term loan was seen at 99 3/8 bid, 99¾ offered, compared to prior levels of 99¼ bid, 99 5/8 offered, the trader said.

To pay down a portion of the 2017 term loan, First Data is out to lenders with $750 million and €200 million of fungible tack-on term loan debt due July 2022 that is talked at Libor/Euribor plus 375 bps with no floor and an original issue discount of 99 to 99.25, a market source said.

All of the 2022 term debt will get 101 soft call protection for six months with this transaction.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the new loans for which commitments are due at 3 p.m. ET on Thursday.

First Data is an Atlanta-based provider of electronic commerce and payment services.

NXP shutting early

Moving to the primary market, NXP accelerated the commitments deadline on its $2.7 billion five-year term loan B (Ba1/BBB-) to 5 p.m. ET on Wednesday from Thursday, a market source remarked.

As before, price talk on the term loan B is Libor plus 325 bps with a 0.75% Libor floor and an original issue discount of 99, and the debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., and Bank of America Merrill Lynch are leading the loan that will be used to help fund the acquisition of Freescale Semiconductor Ltd. for $6.25 in cash and 0.3521 of an NXP ordinary share for each Freescale common share held at the close of the transaction.

The purchase price implies a total equity value for Freescale of about $11.8 billion and a total enterprise value of around $16.7 billion including Freescale’s net debt.

Closing is expected this year, subject to regulatory approvals in various jurisdictions and customary conditions, as well as the approval of NXP and Freescale shareholders.

Eindhoven, Netherlands-based NXP and Austin, Texas-based Freescale are semiconductor companies.

Avago discloses talk

Avago Technologies held its bank meeting on Tuesday afternoon, launching its $7.5 billion seven-year covenant-light term loan B (Ba1/BBB/BBB) with talk of Libor plus 325 bps to 350 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Nov. 12, the source said.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will be used to help fund the acquisition of Broadcom Corp. and to refinance existing debt.

Under the agreement, Broadcom is being bought for $17 billion in cash consideration and the economic equivalent of about 140 million Avago ordinary shares, valued at $20 billion as of May 27. Broadcom shareholders will own around 32% of the combined company.

Avago pro rata

Avago already syndicated in August via left lead-Credit Suisse a $500 million five-year revolver (Ba1) and a $4.25 billion five-year term loan A (Ba1) for the Broadcom transaction.

The term loan A, which was upsized during syndication from $3.25 billion, is priced at Libor plus 150 bps to 200 bps, subject to a ratings-based grid.

Closing on the acquisition is expected in the first quarter of 2016, subject to regulatory approvals in various jurisdictions and the approval of Avago’s and Broadcom’s shareholders.

Avago is a designer, developer and supplier of analog semiconductor devices with headquarters in Singapore and San Jose, Calif. Broadcom is an Irvine, Calif.-based provider of semiconductor solutions for wired and wireless communications. The combined company will adopt the name Broadcom Ltd.

Shoes for Crews guidance

Shoes for Crews came out with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $233 million seven-year covenant-light first-lien term loan B (B2) that launched with a morning bank meeting, a source said.

Commitments are due on Nov. 17, the source added.

The company’s $358 million credit facility also includes a $25 million six-year revolver (B2) and a $100 million second-lien term loan that was privately placed.

Antares Capital, Golub Capital and Macquarie Capital (USA) are leading the credit facility that will be used to back the recently completed buyout of the company by CCMP Capital Advisors LLC.

Shoes for Crews is a West Palm Beach, Fla.-based supplier of slip-resistant footwear for the workplace.

Premiere Global sets meeting

Premiere Global Services surfaced with plans to hold a bank meeting at 10 a.m. ET on Thursday to launch its previously announced $700 million senior secured credit facility, a market source remarked.

The facility consists of a $50 million five-year revolver, a $500 million seven-year first-lien term loan and a $150 million eight-year second-lien term loan.

Barclays, SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used with $400 million in equity to fund the buyout of the company by Siris Capital Group LLC for $14 per share in cash, or about $1 billion.

Closing is subject to customary conditions, including the receipt of shareholder approval, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other foreign antitrust regulatory approvals, as necessary. The transaction is not subject to any financing condition.

Premiere Global is an Atlanta-based provider of collaboration software and services.

Americold on deck

Americold Realty Trust scheduled a lender call for Thursday to launch an up to $475 million credit facility (B3/BB), according to market sources.

The facility consists of an up to $150 million three-year revolver and a $325 million seven-year term loan B, sources said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance CMBS debt and mortgages, and for general corporate purposes.

Americold is an Atlanta-based provider of temperature-controlled warehousing and logistics to the food industry.

Quanex closes

In other news, Quanex Building Products Corp. completed its $410 million senior secured credit facility that includes a $100 million five-year asset-based revolver and a $310 million seven-year term loan B (B2/BB), according to an 8-K filed with the Securities and Exchange Commission.

Revolver pricing can range from Libor plus 150 bps to 200 bps, depending on average excess availability during each fiscal quarter, and pricing on the term loan is Libor plus 525 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The term loan has 101 hard call protection for one year.

During syndication, pricing on the term B was increased from Libor plus 375 bps, the discount widened from 99, the call protection was revised from a 101 soft call for six months and a total leverage covenant was added to the initially covenant-light loan.

Wells Fargo Securities LLC led the credit facility that was used with cash on hand to fund the acquisition of Woodcraft Industries for about $248.5 million, to refinance existing debt and for general corporate purposes.

Quanex is a Houston-based supplier of window and door components. Woodcraft is a St. Cloud, Minn.-based supplier of doors and components.

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